OxyChem triples Q4 earnings to $111m on improved margins and volumes

26 January 2011 14:01[Source: ICIS news]

TORONTO (ICIS)--Occidental Petroleum’s OxyChem chlor-alkali and vinyls business more than tripled 2010 fourth-quarter earnings to $111m (€81m), from $33m in same period in 2009, as margins and volumes improved, the company said on Wednesday.

However, on a sequential comparison, the quarter’s chemical earnings were, as expected, below the $189m OxyChem generated in the 2010 third quarter.

OxyChem’s sales for the three months ended 31 December rose 27.7% year on year to $996m.

For the full 12 months of 2010, OxyChem’s earnings were $438m, up 12.6% year on year from $389m in 2009, as full-year chemicals sales rose 24.5% to $4.02bn.

The improvement in full-year 2010 chemical results reflected improved market condition, particularly for exports, driven by favourable North American feedstock costs, the company said.

Overall, Los Angeles-based Occidental Petroleum increased its fourth-quarter net income by 29.2% year on year to $1.2bn, as sales rose 15.5% to $5.1bn.

The company credited higher oil and gas production and higher prices for the year-on-year improvement in quarterly results.